Abbott said they are cooperating with the government investigation.
Feb 18, 2023 8:21pm ET
• 5 minutes reading time
Abbott is under investigation by the Securities and Exchange Commission and the Federal Trade Commission for its infant formula business, the company announced in a new SEC filing.
Abbott said in a filing Friday that they received a subpoena from the SEC’s Enforcement Division in December 2022, requesting “information regarding the powdered infant formula business and related public disclosures.”
In January, Abbott received “a civil investigation request” from the FTC seeking information related to the agency’s investigation into companies that entered into infant formula contracts through the USDA with the federal program Special Supplemental Nutrition Program for Women, Infants , and Children” (WIC) had advertised.
In this file photo dated May 17, 2022, bottles of Similac baby formula are seen on empty shelves in the baby formula department at a New Jersey store due to a shortage of baby formula. Anadolu Agency via Getty Images, FILE
Abbott’s disclosure of those investigations comes after the Justice Department had previously launched a criminal investigation into Abbott’s infant formula manufacturing conduct, a source familiar with the matter told ABC News after contamination concerns most recently prompted a massive recall and closure of its Sturgis, Michigan plant , had triggered year.
An Abbott spokesman told ABC News that they are “collaborating with the government investigation.”
An FTC spokesman declined to comment to ABC News on Saturday.
ABC News has also reached out to the SEC for comment and has not yet received a response.
A pallet of Similac infant formula is seen at a food bank in West Covina, California in this file photo dated December 29, 2020. Bing Guan/Portal, FILE
The discovery of Cronobacter sakazakii bacteria at Abbott’s Sturgis facility led to a massive voluntary infant formula recall last February after four babies who ate Abbott’s infant formula contracted Cronobacter infections. Two of the infants later died, although Abbott claims there is no conclusive evidence that his formula caused the infant diseases because neither of the Cronobacter strains found in their facility matched the two genetically sequenced samples from the diseased infants.
Ultimately, it was the combined findings of Cronobacter at Abbott’s plant — along with operational deficiencies identified by federal investigators and consumer complaints — that led to the plant’s closure.
After inspecting Abbott’s Sturgis facility last year, FDA chief Dr. Robert Califf the “shocking” and “incredibly unsanitary conditions” that investigators found.
“Stagnant water; Cracks in key equipment presenting the potential for bacterial contamination, particularly in the presence of moisture; leaks on the roof; a previous citation for inadequate handwashing,” Califf testified before Congress in May. “Many signs of a disappointing lack of attention to safety culture in this product so important to the lives of our most precious people.”
Abbott’s recall bounced off American groceries and family pantries, exacerbating an already growing supply problem and forcing families to hunt months for what their babies needed.
At the height of the severe shortages last May, the FTC had already opened an investigation into the formula crisis, probing potential unfair and illegal companies that could take advantage of parents’ desperation amid the crisis.
News of these latest investigations into Abbott also follows recent analysis by health experts who denounced major formula makers, including Abbott, for “exploitative” marketing and aggressive lobbying practices.